Ashington in receivership

Ashington, the high-flying property developer once chaired by
Mark Bouris
, has gone into receivership.

The action was triggered by
Westpac Banking Corp
subsidiary
St George Bank
over Ashington’s inability to repay loans on a $50 million office and retail development in Potts Point.

Paul Billingham and Trevor Pogroske of Grant Thornton have been appointed receivers to three companies, Ashington Group, Ashington Management, and Ashington Capital.

Mr Billingham said he “had no view at this stage" as to whether St George would succeed in recovering its debts and he said the bank would consider whether there were “any actions worth pursuing".

“The group’s banker has been very supportive of director Craig Anderson’s efforts to recapitalise the companies over the last 18 months,’’ he said. “It has become increasingly clear that the prospect of meaningful debt reduction has diminished and so the bank has decided to exercise its rights to appoint receivers."

Mr Billingham said the receivership extended over all of Ashington’s properties.

Over the past year Ashington has lost control of much of its empire. Prime redevelopment sites such as the Sheraton Hotel at Noosa in Queensland, sites in Double Bay and Potts Point in Sydney, and Stonington Mansion site in Melbourne, have slipped away.

The group also faces a $5 million lawsuit from Parissen Capital, the heavy-hitting fund manager that took control of a series of the group’s development projects last year.